ANDREW LIN | Canada Emergency Commercial Rent Assistance

Canada Emergency Commercial Rent Assistance

The Canada Emergency Commercial Rent Assistance initiative has been introduced by the Canadian Federal Government to provide relief for small businesses impacted by the COVID-19 pandemic. Here’s what you need to know.

What is Canada Emergency Commercial Rent Assistance?

Canada Emergency Commercial Rent Assistance, or CECRA, offers unsecured, forgivable loans to eligible commercial property owners. This allows them to reduce the rent owed by their small business tenants, as well as meet operating expenses on the affected properties.

How Does Cecre Work?

Commercial property owners will offer a minimum of 75% reduction in rent for the months of April, May and June 2020. This means that 25% will be received from the tenant, 50% will be covered by forgiven loans from the government, and the landlord will be required to forgo the remaining 25%. Federal and provincial governments will share in the cost of the loans.

Applications are open until 31 August 2020, and the benefits will be applied retroactively if approved after the relevant period.

As a Commercial Property Owner, Am I Eligible for Cecre?

To qualify for CECRE, you must:

own commercial property occupied by one or more impacted small business tenants, and
enter into a legally binding agreement with each affected tenant to reduce rent by at least 75% for the aforementioned three month period.

The agreement made with each tenant must include a moratorium on eviction for the relevant period, as well as a declaration of rental revenue.

Toronto is known for its diverse culinary scene, with over 10,000 restaurants and food establishments. The city offers a range of cuisines, from traditional Canadian fare to international flavors. Toronto’s restaurants are recognized globally for their quality and innovation. In fact, several Toronto restaurants have been ranked among the world’s best.

Restaurant In Toronto

What if I’m a Small Business Tenant?

If you pay no more than $50,000 in monthly gross rent per location, generate no more than $20 million in gross annual revenues, and have experienced at least a 70% decline in pre-COVID revenues, your small business will be eligible for the CECRE program – provided that your property owner is also eligible.

By taking part in the program, the property owner must agree that the 75% rent reduction for your tenancy is forgiven, meaning that they cannot attempt to recover it from you at a later date.

Where Can I Find More Information?

For further details on eligibility requirements, the application process, and additional support and resources available to both commercial property owners and small business tenants impacted by the COVID-19 crisis, please visit Canada Mortgage and Housing Corporation.

Tips for Finding the Perfect Restaurant

Now that you’re convinced that buying an existing restaurant is the right choice for you, here are some tips on finding the perfect one:

Determine your budget:
Before you start looking for a restaurant, you’ll need to determine your budget. This will help you narrow down your search and ensure that you don’t waste time looking at restaurants that are outside of your price range.
Consider location:
Location is key when it comes to running a successful restaurant. Look for a restaurant that is situated in a high-traffic area with plenty of foot traffic. Also, consider the neighborhood and the surrounding businesses.
Review financials:
When evaluating a restaurant for sale, be sure to review its financials. Look at revenue, expenses, and profit margins to get a sense of how the business is performing.
Evaluate the physical space:
Take a close look at the physical space of the restaurant. Consider the layout, decor, and overall ambiance. You’ll want to make sure that the restaurant has a welcoming atmosphere that will appeal to customers.Review the menu.
Review the restaurant’s menu to get a sense of the type of cuisine it offers. Determine whether the menu is popular among customers and whether there are opportunities to expand the menu or introduce new dishes.
Seek expert advice
Consider seeking advice from experts in the restaurant industry, such as restaurant brokers or consultants. They can provide valuable insight and guidance throughout the buying process.